For an excellent analysis, read this entire post.But relative to the Charlottesville market, The median sales price for the entire market area in 2005 was $255,000 which is $30,000 more than the previous year’s figure. Nelson led the way with a median price of $300,000 (up 28%) followed by Albemarle $285,000 (up 8%), Charlottesville $247,428 (up 12%), Greene $234,900 (up 31%), Fluvanna $230,000 (up 24%), and Louisa $205,200 (up 19%). The overall market, including properties outside the areas listed, increased by 13% to a median price of $255,000. (Note: Albemarle’s median price increase was lower than other areas because of a significant increase in affordable condo units.)The Charlottesville region’s average income is $56,487 and the median income is $45,022. Source: TJPED (pdf) The median income for the City of Cville is significantly lower than that of Albemarle – You do the math.
Browsing Category Affordability
Morning Reading (a bit of green)
Interest Rates, not home prices have the greatest impact on “affordability”Simple things to do to prepare your house for the market.Homebuilders’ incentives – this is going to be a more common theme in 2006Perhaps most interesting, “Ready for Everything under the Solar Panel” (thanks to Natural Home & Garden blog). I’ve said it before and I’ll say it again – the segment of the market that caters to and specializes in sustainable/renewable/efficient energy and building is poised for significant growth.
Neighborhood Model – revisited?
This is potentially big news … and exciting. Courtesy of WINA.Citizen advocacy groups and some Albemarle Supervisors believe the new year will bring a renewed focus on the county’s Neighborhood Model. There are vocal critics of Albemarle’s approach to suburban sprawl who says it’s time the model got tweaked. … Loach is citing the county’s own surveys, which show dwindling support for the current approach.I am curious to know which citizen advocacy groups they are referring to. In light of the BoS meeting earlier this month where two of the Supervisors expressed real reservations about the Neighborhood Model’s direction, I look forward to seeing how this shakes out. 2006 should be a big year.
Smart growth raises housing prices?
Thanks to the Washington Times:Economists increasingly are concluding that the shortage of affordable housing in Washington and other major U.S. cities on the East and West coasts is a result more of man-made restrictions on development than high construction costs or other market forces. “It simply takes too long and is too expensive to move through the development process,” said Mark Vitner, senior economist at Wachovia Securities, pointing at “smart growth, slow growth and no growth” movements in many of the same areas where the population and demand for housing are growing the fastest. The referenced study by the National Bureau of Economic Research remarks:The key underlying reason for rising house prices, though, is supply, according to economists Edward Glaeser, Joseph Gyourko, and Raven Saks…. Local residents — more educated, more affluent — have had a greater ability to block new projects should they be deemed harmful to their own interests, for example to the value of their homes…. 11129).And then, from this week’s C-Ville:In 2001 the County adopted a set of rules for growth-area housing developments called “The Neighborhood Model.â€Â The Neighborhood Model includes a list of 12 so-called New Urbanist principles—rules for building setbacks, sidewalks and parking—that are supposed to make neighborhoods more pedestrian friendly. But the County tends to apply the rules inconsistently, and the resulting Neighborhood Model developments are hardly paragons of progressive design…. The Neighborhood Model clearly needs some tweaking both to protect Albemarle from sprawl and to satisfy developers.
Another take on Growth in Central Virginia
Virginia Business Magazine has an excellent article this month focusing on the challenges (and successes) faced by the Central Virginia region. One thing is clear from the article – Charlottesville’s reach extends far beyond its limits. asdfThe area is adding jobs, unemployment is low, and the U.Va. is helping research-oriented entrepreneurs begin new businesses. New companies in the area find that, despite the low jobless rate and high cost of living, the pool of well-educated available workers is large. Many are “underemployed,†willing to take lower-paying jobs just so they can stay in the area.asdfEconomic and population growth has not been limited to Charlottesville and Albemarle County. The surrounding counties — Greene, Fluvanna, and Orange among them — are seeing spillover development as they keep up with 4 percent annual population growth in some areas. A large mixed-use retail complex, Hollymead Town Center, just went up north of Charlottesville near the Greene County line.
Builders’ Blitz
This story in the DP this morning is a good sign that the Builders Blitz is ready to take off. I wrote about this in June, and am excited to see it coming to fruition. It sounds like the premise of one of those reality shows: Six building teams and six architects will try to construct six houses in one week in a Charlottesville neighborhood. …Michael Bednar, Builders Blitz design coordinator and a professor of architecture at the University of Virginia, agreed. “These are not the homes you would see in a usual Habitat project,” he said. “The houses will be more innovative and different.”Nationwide, the weeklong project is expected to result in the construction of 1,000 homes across the United States, including several hundred for hurricane victims on the Gulf Coast.There are several similar Habitat for Humanity projects throughout the Commonwealth. To support Habitat, please call 434-293-9066.
Affordability calculator and our region.
Affordable housing, particularly for the service sectors of our region, is one of the most pressing crises we face…. This is an interesting calculator that highlights the following:When it comes to the health and vitality of America’s communities, affordable housing is key…. Employers struggle to attract and retain the labor force so vital to their bottom line. Low- to moderate-income working families work longer hours, endure long commutes or cut back on basic necessities in order to pay for housing. 

Who are among the ranks of America’s workers struggling to afford housing? In some high-priced communities, people who provide the bulk of vital services – teachers, firefighters, police officers, retail sales workers and restaurant workers – cannot afford to live in the communities they serve. Even in more moderately-priced communities, people who work a full-time job pay an excessive portion of their income for housing.Check out what a firefighter makes and how much he/she would have to make to afford a median-priced home in Central Virginia…. I have.The median sales price for the entire market area in the third quarter was $270,000 which is $40,000 more than the previous year’s figure.Thanks to CAAR for the data.